Monro: Market Conditions Are Improving But Still A Risky Investment

(7min)

Summary

  • Monro's share price has dropped 72% from its all-time highs, but market conditions are improving, offering hope for the company.
  • Lockdowns negatively impacted Monro's growth, but recent data shows recovery in the automotive repair service segment.
  • Q4 and FY24 earnings declined compared to the previous year, but gross margin improved. The sales mix and oversupply of lower-margin tires pose challenges.
Car on winter tires drives through a snow-covered road.

djedzura/iStock via Getty Images

Thesis

Monro (NASDAQ:MNRO) has been struggling, and its share price has tanked 72% from its all-time highs. I believe there is hope for MNRO as market conditions are improving, which can end its struggle. However, there are still a lot of negatives that make MNRO

This article was written by

I specialize in technical analysis and I invest in small and microcap stocks with great future growth potential. I look for stocks that are both technically and fundamentally strong.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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